Pedro Pitta Barros:“[Portugal and Greece] may be different, but if for international borrowers they look similar, even if these are biased perceptions, then interest rates in international borrowing will reflect these beliefs. If this is really the major issue, then Portugal needs to act on such beliefs, with policy measures but also with reliable information. It is not enough to claim that we are different, Portugal has to take measures that Greece would not, thus showing in a credible way that we are different. Only “cheap-talk”, like written documents about long-term strategies, will not be enough.(…) Otherwise, if the Portuguese Government just adopts milder but similar measures to the ones in Greece, how can it expect to be treated differently?”
Luciano Amaral: [E]ven if rescue is on the way, no austerity plan or bailout will change the fundamental problems of Greece’s economy and public spending. Public spending has an inertia that is based mostly on the growth of pensions and health-care. Raising taxes and cutting public salaries are one-off measures. You cannot sustain them forever. Public spending will keep on growing, taxes won’t be enough, deficits will repeat in the future. The question is: will the EU keep on saving Greece in the future?